Modelling sustainable development: an economy-ecology integrated model

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This paper analyses sustainable development in an endogenous growth model which integrates a dynamic specification of both economic and ecological relations and all the interactions between the economy and the natural environment. It is common practice to solve growth models by looking at a balanced growth solution, which is often associated with sustainable development. We derive the conditions under which sustainable development is feasible and optimal. Finally, we discuss some comparative statics of the balanced growth solution and give a numerical example to illustrate the model and to provide further insight.
Original languageEnglish
Pages (from-to)333-353
Number of pages20
JournalEconomic Modelling
Publication statusPublished - 1996


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